One of the nation's most ambitious attempts to recycle wastewater into potable water received a huge lift last month from the EPA with the receipt of a $164 million loan under the now-permanent Water Infrastructure Finance and Innovation Act.
On Nov. 27, Mayor Kevin L. Faulconer joined U.S. Environmental Protection Agency Acting Administrator Andrew Wheeler in Washington, D.C. to officially accept a $614 million federal loan from the EPA's Water Infrastructure Finance and Innovation Act (WIFIA) program.
The loan will help finance the first phase of Pure Water San Diego – a project that will use proven water purification technology to clean recycled water to produce safe, high-quality drinking water, according to a city press release.
“This federal funding is validation that our Pure Water Program is cutting edge technology and a worthy investment for San Diego’s future water independence,” Mayor Faulconer said.
The first phase of Pure Water, estimated to cost $1.4 billion and scheduled to open in late 2023, would expand the City’s potable water production capacity by 30 million gallons per day to replace the use of imported water. Currently, the County of San Diego imports 85% of its water from the Colorado River and Northern California Bay Delta.
EPA’s WIFIA loan will help finance nearly half [the cost] – up to $614 million. Because the WIFIA program offers loans with low interest rates, the City is expected to save an estimated $184 million compared to a typical bond issuance.
“Through WIFIA, EPA is playing a leading role in President Trump’s efforts to upgrade our nation’s water infrastructure, create well-paying jobs, and ensure all Americans have access to clean drinking water," said Wheeler.
The City Council voted on Nov. 15 to authorize Mayor Faulconer to begin construction of Phase I of the Pure Water program. A groundbreaking, presumably at the future North City Pure Water Facility, is set for the spring.
The project received the fifth loan to date under the WIFIA program, according to EPA's press release. See "FY 2017 Selected Projects" marked "closed" for the other four.
WIFIA becomes a permanent program – this year
WIFIA, like its Department of Transportation counterpart on which it is modeled, the Transportation Infrastructure Finance and Innovation Act (TIFIA), leverages federal dollars and attracts private and non-federal capital for infrastructure projects. TIFIA was created under the Clinton administration in 1998 and was reauthorized in the December 2015 FAST Act and signed by President Obama.
WIFIA sprung from bipartisan Congressional support in 2012 and was included as a five-year pilot program in the Water Resources and Reform Development Act of 2014, a measure intended to help lower the cost of repairing the nation’s aging water and wastewater infrastructure, signed into law by President Obama. The U.S. Army Corps of Engineers and the EPA are responsible for administering the program.
Under S.3021 - America's Water Infrastructure Act of 2018, introduced by Sen. Amy Klobuchar (D-Minn.), and signed into law by President Trump on Oct. 23, WIFIA was reauthorized as a permanent program with "authorized appropriations at a level of $50 million for each of FY2020 and FY2021," according to a Congressional Research Service analysis [pdf] dated Sept. 26.
First EPA issued WIFIA loan
On April 20, the EPA under President Trump "issued its first-ever loan from the Water Infrastructure Finance and Innovation Act (WIFIA) program to King County, Washington, to help finance its Georgetown Wet Weather Treatment Station" that will process combined sewer overflows during heavy storms, thus protecting the ecological health of Puget Sound.
The project is estimated to cost $275 million and EPA’s WIFIA loan will help finance nearly half that—up to $134.5 million. Because the WIFIA program offers loans with low, fixed interest rates, EPA’s loan is expected to save King County up to $32 million.
On Nov. 21, the facility earned the state's first 'Platinum' rating from the Institute for Sustainable Infrastructure’s Envision rating system, recognizing King County’s commitment to sustainable communities and the environment. [See Planetizen: Envisioning a LEED-like Ratings System for Infrastructure, May 22, 2013].
Pending WIFIA loans
EPA received 62 letters of interest from both public and private entities in response to a 2018 WIFIA Notice of Funding Availability issued on April 4. On Nov. 1, EPA invited 39 projects in 16 states and D.C. to apply for loans. See summary fact sheets here.
Related in Planetizen:
-
Three posts tagged, "Water Infrastructure Finance and Innovation Act"
FULL STORY: EPA Awards $614 Million Loan to Bolster San Diego’s Innovative Pure Water Project
San Diego Launches Massive Sewage Treatment Project
The ambitious Pure Water project is designed to reduce the city's dependence on imported water and limit the amount of sewage dumped into the ocean.
Drinking Water Lessons from West Texas
Several cities in West Texas have a long history in wastewater reclamation, even using the water for drinking, due to the Texas drought. El Paso aims to build the nation's largest advanced purification project for direct water reuse.
Mississippi Investigated for Civil Rights Violations in Jackson Water Crisis
The NAACP has accused a pair of Mississippi departments of discrimination against Black Mississippians, leading to the loss of drinking water in the state's capital city at the end of the summer.
Depopulation Patterns Get Weird
A recent ranking of “declining” cities heavily features some of the most expensive cities in the country — including New York City and a half-dozen in the San Francisco Bay Area.
California Exodus: Population Drops Below 39 Million
Never mind the 40 million that demographers predicted the Golden State would reach by 2018. The state's population dipped below 39 million to 38.965 million last July, according to Census data released in March, the lowest since 2015.
Chicago to Turn High-Rise Offices into Housing
Four commercial buildings in the Chicago Loop have been approved for redevelopment into housing in a bid to revitalize the city’s downtown post-pandemic.
New Park Opens in the Santa Clarita Valley
The City of Santa Clarita just celebrated the grand opening of its 38th park, the 10.5-acre Skyline Ranch Park.
U.S. Supreme Court: California's Impact Fees May Violate Takings Clause
A California property owner took El Dorado County to state court after paying a traffic impact fee he felt was exorbitant. He lost in trial court, appellate court, and the California Supreme Court denied review. Then the U.S. Supreme Court acted.
How Urban Form Impacts Housing Affordability
The way we design cities affects housing costs differently than you might think.
City of Costa Mesa
Licking County
Barrett Planning Group LLC
HUD's Office of Policy Development and Research
Mpact Transit + Community
HUD's Office of Policy Development and Research
City of Universal City TX
ULI Northwest Arkansas
Town of Zionsville
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
